Name of the Project
Ana Paula gold/silver project.

Location
The Ana Paula project is located in the Guerrero gold belt, in the state of Guerrero, Mexico.

Client
Timmins Gold.

Project Description
The project proposes to develop a greenfield openpit gold/silver mine and a gravity/flotation/carbon-in-leach process plant, with a production rate estimated at 6 000 t/d.

Average production has been estimated at 116 000 gold ounces a year and 239 000 silver ounces a year over an 8.2-year mine life.

A total of 17.8-million tonnes of mineralised resource can be mined and processed, with 33.6-million tons of waste and 12.5-million tonnes of capitalised waste. Some of the capitalised waste rock will be stockpiled and an undetermined portion may be reclassified as a resource at a later date, should metallurgical testwork support economic viability.

The flowsheet selected for Ana Paula consists of a primary crushing, grinding (semiautogenous mill, ball mill and vertical mill), gravity recovery, flotation, disposal of flotation tails, leaching of a combined gravity and flotation concentrate, and recovery of precious metals using carbon-in-leach.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $408-million, and an internal rate of return of 59%, with a payback of 1.6 years.

Value
Initial capital costs are estimated at $121.7-million, including contingency costs of $19.8-million.

Duration
Not stated.

Latest Developments
Timmins has approved a preconstruction programme, including the start of a $9.2-million feasibility study, for the Ana Paula project. Preconstruction activities will start immediately and will include feasibility work, infill drilling and metallurgical testwork, as well as environmental baseline and permitting activities. The company expects the feasibility study to be completed by the third quarter of 2017 and to have all the permits required to start construction by the first quarter of 2018.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Timmins Gold, tel +1 604 682 4002, fax +1 604 682 4003 or email info@timminsgold.com.